city of houston strategic purchasing divisionpurchasing.houstontx.gov/bids/s25958/s25958 specs...

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CITY OF HOUSTON STRATEGIC PURCHASING DIVISION

Issue Date: August 19, 2016

FORMAL INVITATION FOR BEST VALUE BID

CHEMICAL, CAUSTIC SODA FOR

PUBLIC WORKS & ENGINEERING DEPARTMENT

BID NO: S12-S25958

NIGP CODE: 885-78

Buyer: Questions regarding this solicitation should be addressed to Martin L. King, Division Manager, at [email protected] or Yesenia Chuca, Senior Procurement Specialist, at 832-393-8727or e-mail to [email protected]. Sealed bids, in duplicate, will be received by the City Secretary of the City of Houston, in the City Hall Annex, Public Level, 900 Bagby, Houston, Texas 77002 until no later than Thursday, October 6, 2016 at 10:30 A.M., and all bids will be opened and publicly read in the City Council Chamber, City Hall Annex, Public Level, 900 Bagby at 11:00 A.M. on that date for the purchase of Caustic Soda.

Electronic Bidding: In order to submit a bid for the items associated with this procurement, you must fill in the pricing information on the “PLACE BID” page. Prebid Conferencet: A Pre-Bid Conference will be held for all Prospective Bidders in the Strategic Procurement Division, Concourse Level (Basement), Conference Room #1, City Hall, 901 Bagby, at 1:00 p.m. on Thursday, September 22, 2016. All Prospective Bidders are urged to be present. It is the bidder’s responsibility to ensure that they have secured and thoroughly reviewed the solicitation documents prior to the Pre-Bid Conference. Any revisions to be incorporated into this solicitation document arising from discussions before, during and subsequent to the Pre-Bid Conference will be confirmed in writing by Letter(s) of Clarification prior to the bid due date. Verbal responses will not otherwise alter the specifications, terms and conditions as stated herein. The place of the bid opening may be transferred in accordance with Paragraph (b), (5) of Section 15-3 of The Code of Ordinances, Houston, Texas. The bid opening meeting may be rescheduled in accordance with Paragraph (b), (6) of said Section 15-3. The City reserves the right to reject any or all bids or to accept any bid or combination of bids deemed advantageous to it. City Employees are prohibited from bidding on this solicitation in accordance with the Code of Ordinances, Section 15-1. Inquiries concerning this ITB should be submitted via email to [email protected] at Strategic Purchasing, Service Contract Section, Room B 200, City Hall, 901 Bagby, Houston, Texas 77002, Attn: Martin L. King (832)393‐8705/ [email protected] or Yesenia Chuca at (832) 393‐8727/ [email protected], no later than 5:00 P.M., Monday, October 1, 2016.

*CONTENTS: SECTION A: OFFER SECTION B: SCOPE OF WORK/SPECIFICATIONS SECTION C: GENERAL TERMS & CONDITIONS SECTION D: EVALUATION MATRIX

*NOTE 1: Bidders must read the bid document in its entirety and comply with all the requirements set forth therein. *NOTE 2: To be considered for award, please submit the electronic bid form and the forms listed in Section A, including the Official Signature Page, which must be signed by a company official authorized to bind the company.

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SECTION A.

CHEMICAL, CAUSTIC SODA FOR THE

PUBLIC WORKS & ENGINEERING DEPARTMENT BEST VALUE BID INVITATION NO. S40-S23657

NIGP CODE 885-78

Honorable Mayor and City Council Members:

The undersigned hereby proposes to furnish and deliver chemical caustic soda, FOB destination point as listed on

the electronic bid form and on the individual Purchase Orders, in accordance with the Net Prices and other conditions shown herein, and in accordance with the City's Specifications and General Terms and Condition Specifications. When issued, Letters of Clarification shall automatically become part of this bid document and shall supersede any previous specifications or provisions in conflict with the Letters of Clarification. It is the responsibility of the bidder to ensure that it has obtained such letters. By submitting a bid on this project, bidder shall be deemed to have received all Letters of Clarification and to have incorporated them into its bid. THE MANUFACTURER'S NAME, PRODUCT NAME AND PRODUCT NUMBER MUST BE DESIGNATED IN THE SPACE PROVIDED IF BIDDERS ARE BIDDING AN “OR EQUAL” ITEM.

The City may accept this bid offer by issuance of a Notice of Award Letter and/or a Purchase Order covering award of said bid to this Bidder at any time on or before the 120th day following the day this Official Bid Form is opened by the City. This offer shall be irrevocable for 120 days after the bid opening or for 90 days after City Council awards the bid, whichever comes last, but this period may be extended by written agreement of the parties.

The City of Houston reserves the option, after bids are opened, to increase or decrease the quantities listed, subject to the availability of funds, and/or make award by line item. BIDDING AND AWARD:

It is the intent of the City to award, on the basis of best value respondent meeting specifications for the entire award; however, the right is reserved to accept or reject in whole or in part any or all bids received and to make an award on the basis of individual item, combination of items or overall best bid, as it is deemed in the best interest of the City.

THIS IS A (36) MONTH AWARD WITH TWO TWELVE (12) MONTH RENEWAL OPTIONS

FIRM PRICES ARE TO BE QUOTED FOR THE FIRST THREE (3) MONTHS PERIOD

SPECIAL BIDDERS NOTE: These bid documents are to be bid exactly as published or amended by any letter(s) of clarification that may be issued pertaining thereto. LINE ITEM BIDS: Only one item may be bid for each referenced line item. To bid the referenced line item and an alternate, bidder must submit a separate bid form for each alternate item(s) with its own original signature page. Multiple bids for the same line item on one bid form will be just cause to reject a bid from further consideration.

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SECTION A. OFFICIAL BID FORM FOR CHEMICAL, CAUSTIC SODA FOR THE PUBLIC WORKS & ENGINEERING DEPARTMENT, CONTINUED: PROTESTS Filing a Protest

o An interested party may file a protest on the basis that the City has failed to comply with applicable federal or state law or with City ordinances. The subject of the protest shall be limited to fraud, corruption, or illegal acts undermining the objectivity and integrity of the procurement process. A protest must be filed in accordance with the timing requirements set forth herein and must include: The name, address, telephone number, and email address of the protestor. The number of the solicitation. Information confirming that the protestor is an interested party. A written statement of the grounds for the protest and the law or ordinance alleged to have been violated. The

statement shall be accompanied by relevant supporting documentation and the relief requested. The signature of the protestor.

o Protests shall be submitted to: Chief Procurement Officer, City of Houston, 901 Bagby B300, Houston, TX 77002.

The City recognizes three types of protests:

o Protests regarding solicitation (Pre-Submission Protest) Any Pre-Submission Protest regarding a solicitation published by the City shall be filed no later than five days

before the opening of bids (if a competitive bid) or due date for submittals or proposals (if an RFP/RFQ), as applicable.

o Protests regarding the evaluation or rejection of bids, qualifications, or proposals (Pre-Award Protest)

Any Pre-Award Protest regarding the evaluation of bids, qualifications, or proposals by the City must be filed

no later than five business days prior to the City Council meeting at which the award appears on the agenda.

o Protests made after City Council’s decision to award a contract (Post-Award Protest) Any protest regarding the award of a contract must be submitted no later than five calendar days after the date

of the award.

o Any protest received after the applicable deadline will not be considered.

NO CONTACT PERIOD: Neither bidder(s) nor any person acting on bidder(s)’s behalf shall attempt to influence the outcome of the award by the offer, presentation or promise of gratuities, favors, or anything of value to any appointed or elected official or employee of the City of Houston, their families or staff members. All inquiries regarding the solicitation are to be directed to the designated City Representative identified on the first page of the solicitation. Upon issuance of the solicitation through the pre-award phase and up to the date the City Secretary publicly posts notice of any City Council agenda containing the applicable award, aside from bidder’s formal response to the solicitation, through the pre-award phase, written requests for clarification during the period officially designated for such purpose by the City Representative, neither bidder(s) nor persons acting on their behalf shall communicate with any appointed or elected official or employee of the City of Houston, their families or staff through written or oral means in an attempt to persuade or influence the outcome of the award or to obtain or deliver information intended to or which could reasonably result in an advantage to any bidder. However, nothing in this paragraph shall prevent a bidder from making public statements to the City Council convened for a regularly scheduled session after the official selection has been made and placed on the City Council agenda for action, or to a City Council committee convened to discuss a recommendation regarding the solicitation. SECTION A. OFFICIAL BID FORM FOR TRANSMISSION ALLISON REBUILT, REPLACEMENT PARTS AND REPAIR

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SERVICES FOR THE FLEET MANAGEMENT DEPARTMENT, CONTINUED: HIRE HOUSTON FIRST: THIS PROCUREMENT IS SUBJECT TO THE HIRE HOUSTON FIRST PROGRAM, WHICH GIVES A PREFERENCE TO CERTAIN LOCAL BIDDERS IN AWARD OF THE PROCUREMENT. FOR MORE INFORMATION, GO TO:

http://www.houstontx.gov/onestop/hirehoustonfirstaffidavit.pdf Designation as a City Business or Local Business To be designated as a City or Local Business for the purposes of the Hire Houston First Program, as set out in Article XI of Chapter 15 of the Houston City Code, a bidder or proposer must submit the Hire Houston First Application and Affidavit (“HHF Affidavit”) to the Director of the Office of Business Opportunity and receive notice that the submission has been approved prior to award of a contract. Bidders are encouraged to secure a designation prior to submission of a bid or proposal if at all possible. Designation as a City Business or Local Business (continued) Download the HHF Affidavit from the Office of Business Opportunities Webpage at the City of Houston e-Government Website at the following location:

http://www.houstontx.gov/hbsc/hirehoustonfirstaffidavit.pdf Submit the completed application forms to: Office of Business Opportunity, Houston Business Solutions Center (HBSC), 611 Walker, Level, Houston, TX 77002 or Applications may be submitted via e-mail to [email protected] or faxed to 832.393.0952. Award of a Procurement of $100,000 or More for Purchase of Goods: THE CITY WILL AWARD THIS PROCUREMENT TO A “CITY BUSINESS,” AS THAT TERM IS DEFINED IN SECTION 15-176 OF THE CITY OF HOUSTON CODE OF ORDINANCES (“THE CODE”)

IF THE BID OF THE CITY BUSINESS IS THE LOWEST RESPONSIBLE BID OR IS WITHIN 3% OF THE LOWEST BID RECEIVED, AND

UNLESS THE USER DEPARTMENT DETERMINES THAT SUCH AN AWARD WOULD UNDULY INTERFERE WITH CONTRACT NEEDS, AS PROVIDED IN SECTION 15-181 OF THE CODE.

IF THERE IS NO BID OF A CITY BUSINESS THAT MEETS THESE CRITERIA, THE CITY WILL AWARD THE PROCUREMENT TO THE LOWEST RESPONSIBLE BIDDER. Award of Procurement under $100,000 for Purchase of Goods: THE CITY WILL AWARD THIS PROCUREMENT TO A ” CITY BUSINESS,” AS THAT TERM IS DEFINED IN SECTION 15-176 OF THE CITY OF HOUSTON CODE OF ORDINANCES (“THE CODE”)

IF THE BID OF THE CITY BUSINESS IS THE LOWEST RESPONSIBLE BID OR IS WITHIN 5% OF THE LOWEST BID RECEIVED, AND


IF THERE IS NO BID OF A CITY BUSINESS THAT MEETS THESE CRITERIA, THE CITY WILL AWARD THE PROCUREMENT TO THE LOWEST RESPONSIBLE BIDDER

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SECTION A. OFFICIAL BID FORM FOR TRANSMISSION ALLISON REBUILT, REPLACEMENT PARTS AND REPAIR SERVICES FOR THE FLEET MANAGEMENT DEPARTMENT, CONTINUED: HIRE HOUSTON FIRST (continued): Award of Procurement that may be More or Less than $100,000 for Purchase of Goods: THE CITY WILL AWARD THIS PROCUREMENT TO A “CITY BUSINESS,” AS THAT TERM IS DEFINED IN SECTION 15-176 OF THE CITY OF HOUSTON CODE OF ORDINANCES (“THE CODE”)

IF THE BID OF THE CITY BUSINESS IS LESS THAN $100,000 AND IS THE LOWEST RESPONSIBLE BID OR IS WITHIN 5% OF THE LOWEST BID RECEIVED, OR

IF THE BID OF THE CITY BUSINESS IS MORE THAN $100,000 AND IS THE LOWEST RESPONSIBLE BID OR IS WITHIN 3% OF THE LOWEST BID RECEIVED, AND


Documents/forms must be downloaded from the City’s Website https://houstontx.gov/purchasing/index.html Additional Required Forms to be Included with this Bid: In addition to the electronic Bid Form and the Official Signature Page, the Forms listed in Table 1 must be completed and submitted to the Office of the City Secretary on or before the date and time the bid is due:

Table 1 Affidavit_of_Ownership Fair_Campaign_Ordinance Statement_of_Residency Conflict_of_Interest_Questionnaire Bidders_Attachments_Supply Location_of_Bidders_Inventory Early_Payment_Discount

Table 2 lists other documents and forms that should be viewed/downloaded from the City’s website, but are not required to be submitted with the bid. The City will request these forms, as applicable, to be completed and submitted to the City by the recommended/successful bidder:

Table 2 MWBE Sample_Insurance_Over_$50000 Formal_Instructions_for_Bid_Terms EEOC

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SECTION B. CITY OF HOUSTON

TECHNICAL SPECIFICATIONS FOR

CHEMICAL, CAUSTIC SODA

1.0 BIDDER QUALIFICATIONS:

The purpose of this bid is to determine the best value respondent for 50% and 24-28% Caustic Soda Solution used in the treatment of the City’s drinking water and wastewater. Caustic soda quality and supply is of utmost importance to the health and safety of the citizens of Houston. As a result, Bidders as a minimum must:

1.1 Be an established caustic soda distributor and currently have caustic soda manufacturing facilities and/or

supplier(s) in operation that can produce and deliver sufficient stocks to meet City of Houston’s daily requirements as herein stated and in the electronic bid form.

1.2 Have a satisfactory record of past performance and contract compliance with the City of Houston. 1.3 Have adequate financial resources, or the ability to obtain such resources as required during the performance of

the Agreement. 1.4 Upon 10-working days of request, bidder(s) must provide the City proof of financial stability by submitting your

company’s Dunn & Bradstreet report and/or audited annual financial statements, prepared by a certified public accountant for the past two years or copies of your Federal Tax forms filed to the Internal Revenue Service (IRS) for the past two years.

2.0 BID QUANTITIES:

2.1 Materials will be ordered in accordance with water treatment needs at each delivery location. The maximum quantity of material which the City will be obligated to purchase, resulting from this bid, is the quantity ordered, delivered, and accepted as satisfactory based on Purchase Orders issued by the Purchasing Agent of the City of Houston. However, nothing herein shall be construed as an obligation on the part of the City to order or pay for any quantity other than the amount required for effective treatment of water at each of the City of Houston’s Water Treatment Facilities.

3.0 SOURCE OF SUPPLY:

3.1 Bidder will specify whether the raw materials used in the manufacture of caustic soda supplied are "virgin" materials, or purchased as a “by-product” of another manufacturing process. If purchased as a “by-product”, is the material listed as hazardous waste under 40 CFR 261? If yes, what specific characteristic or constituents cause it to be a listed material?

___________________________________________________________________________________ ___________________________________________________________________________________

___________________________________________________________________________________ ___________________________________________________________________________________

3.2 If the Bidder proposes use of "virgin" materials as the raw material for the process producing caustic soda, Bidder

must supply the following with the bid:

3.2.1. Safety Data Sheets (SDS) for each “virgin” material consumed in the process.

3.2.2. A brief description of the manufacturing process producing the caustic soda to be supplied.

3.3 If the Bidder proposes to supply caustic soda purchased as a “by-product” of another manufacturing process, or proposes use of “by-product” raw materials as the raw material(s) for the process producing any of the coagulant products, Bidder must supply the following with the bid:

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 3.0 SOURCE OF SUPPLY (CONTINUED):

3.3.1. Safety Data Sheets for all raw materials consumed in the process producing the “by-product” raw material.

3.3.2. A description of the process generating the “by-product” to be used as raw materials in the manufacture of caustic soda.

3.3.3. If the “by-product” purchased for use as a raw material in the manufacture of caustic soda is listed as

hazardous waste under Rocky Flats Cleanup Agreement (RFCA) regulations as stated in 40 Code of Federal Regulations No. 261, Bidder must supply the exact nature of the hazardous characteristics and/or constituents.

3.4 If all or some of the “by-product” material has been disposed, in the past, as a hazardous waste, Bidder must

supply the following, with their bid:

3.4.1. A copy of the Texas Water Code (TWC) waste registration for the material, including waste code number, description, and an analysis of the hazardous constituents.

3.4.2. Purchase price of “by-product” material to determine if "fair market value" requirements for recycling of a

hazardous waste are being met.

3.5 If Bidder is not the original manufacturer of material to be supplied, Bidder must supply the Chief Procurement Officer with:

3.5.1. Name, address, phone number and contact person of the original manufacturer.

3.5.2. Actual site(s) of material manufacture.

3.5.3. Shipping point(s) of origin for each source to be supplied.

3.5.4. Whether original manufacturer produces material to be supplied as a “primary product” or as a “by-

product”.

3.5.5. If material to be supplied is a “by-product”, or manufactured from raw materials obtained as a “by-product”, or another manufacturing process, Bidder must submit, as part of bid package, a description of each manufacturing process used for the production of “by-product” caustic soda, or production of by- product raw materials to be used in the manufacture of caustic soda. Bidder must also submit an estimate of the potential contamination of chemical from other materials used or stored at each site of manufacture of virgin or “by-product” caustic soda or raw materials used in the production of caustic soda. If such potential exists, what specific chemical substances are likely to be present?

_____________________________________________________________________________ _____________________________________________________________________________

This section is not to be interpreted as a requirement for detailed proprietary information, but must include a description of original source materials.

3.5.6. Notification of any change of ownership of original manufacturer(s) is to be reported to the Purchasing

Agent and the User Department at least 60 days in advance of transfer of ownership.

3.5.7. Prior notification and written approval must be obtained from the Purchasing Agent and User Department for any significant changes in the original manufacturing process(es), or source materials used, as described in the solicitation if manufactured as a primary product. If material is a “by-product”, the Supplier must submit notification of any significant changes of the manufacturing process(es) and/or source materials used by the process generating “by-product” to the Cheif Procurement Officer. Failure to make such notifications and obtain necessary approvals shall be grounds for termination of this contract.

3.5.8. Safety Data Sheets (SDS) which conform to the format in ANSI Z400.1 (Latest Revision) for the product

manufactured by the process generating caustic soda as a “by-product”, as well as source materials used in the primary process.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 3.0 SOURCE OF SUPPLY (CONTINUED):

3.6 In the event the Bidder is an original manufacturer of material to be supplied, but will not supply all (or any) of the

material from this manufacturing process, Bidder must supply the Purchasing Agent and User Department with:

3.6.1. All information listed in Section 3.5 (3.5.1 thru 3.5.8).

3.6.2. The proportion of material to be supplied from the Bidder's manufacturing process, and the proportion(s) to be supplied from each manufacturer listed in Section 3.5 (3.5.1 and 3.5.2).

4.0 MATERIALS:

The items furnished under this proposal shall be the latest product in production to commercial trade, and shall be of the highest quality as to materials used. SUPPLIER GUARANTEES TO ASSURE THAT IF HE IS NOT THE ORIGINAL MANUFACTURER OF ALL THE MATERIALS TO BE SUPPLIED ON THIS PROPOSAL, OR ANY PORTION THEREOF, THAT HE WILL COMMUNICATE THE NATURE OF THESE SPECIFICATIONS TO THE PROVIDER(S) AND ASSURE THAT SUCH MATERIAL MEETS OR EXCEEDS THESE SPECIFICATIONS. Manufacturer furnishing this item shall be experienced in production of such items and shall furnish evidence of having supplied similar material which has been used successfully in the treatment of potable water and wastewater. The Bidder shall be an established supplier of the items bid for municipal and industrial use.

5.0 TRANSPORTATION AND WEIGHING:

5.1 Caustic soda solution (50% and/or 24-28% Caustic Soda NaOH) shall be shipped in appropriately lined truck trailers. All delivery tickets must have a description of the product being delivered, company name, address, contact person's name, contact phone number, and be accompanied by a weight ticket showing Gross, Net, and Tare weights for each shipment. All weights for bulk chemical deliveries are to be determined at scales maintained at the City of Houston's Water/Wastewater Treatment Facilities, or by other methods previously approved, in writing, by the Cheif Procurement Officer and the Public Works & Engineering Department. The scales located at the City of Houston’s Water/Wastewater Treatment Facilities shall be considered the official scale for billing purposes. These scales meet Weights and Measures Standards through the N.I.S.T. Handbook 44.

5.2 The Supplier/Contractor shall use rear discharge trailers only for the delivery of Caustic Soda to all Water/Wastewater Treatment Facilities. In the event a side discharge trailer comes into a plant, the load and trailer will be rejected and it must be replaced on the same day.

5.3 All access points on the tank trucks will be secured with a locking devise and a numbered tamperproof seal prior to

leaving the manufacturer's facility. The Supplier will provide the tamper proof seal number to the facility contact prior to delivery. The only seal that will be required for removal will be on the discharge line only. Loads that are unsecured, or have a broken, mislabeled, or missing seals will be rejected and returned to the Supplier at its expense. In the event that a load is returned for failure to meet security provisions, Supplier must provide a replacement load of product freshly loaded and sealed at the point of origin within 24 hours. The replacement load must be accompanied by proof that rejected load has not been resealed and returned, or commingled with original batch at the point of origin. Misrepresentation of replacement product or failure to follow these procedures may be grounds for termination of the awarded bid proposal.

5.4 It is the responsibility of the Supplier to conduct security screening on all delivery and support staff that may require access to the Water Treatment facilities. The Supplier will provide the City of Houston with a roster of these employees, and the roster must include the employee's full name, picture, and their driver’s license number. Any changes to the roster must be forwarded to the City of Houston immediately upon change. The vendor will forward the name of the delivery driver to the City of Houston prior to each delivery via e-mail or fax. Failure to adhere to these security requirements will be just cause for termination.

5.5 SUPPLIER SHALL GUARANTEE TO ASSURE THAT EITHER ITS OWN OR ANY COMMON CARRIER USED

FOR TRANSPORT SHALL BE COVERED BY ALL APPROPRIATE INSURANCE REQUIRED BY ANY AND ALL STATE AND FEDERAL AGENCIES FOR THE TRANSPORT OF HAZARDOUS CHEMICALS. SUPPLIER SHALL FURTHER GUARANTEE TO ASSURE THAT ALL VEHICLES ARE PROPERLY PLACARDED AND/OR LABELED, AND SUITABLY MAINTAINED AND EQUIPPED FOR THE SAFE TRANSPORT AND DELIVERY OF HAZARDOUS CHEMICALS.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 5.0 TRANSPORTATION AND WEIGHING (CONTINUED):

5.6 Supplier shall insure that all delivery vehicles be equipped with spill prevention and containment apparatus

(including drip containers, absorbent pads and other clean-up materials). The driver must be trained in the proper use of these materials to prevent spills to the environment and use diligence in the clean-up thereof.

5.7 The soluble Sodium Hydroxide (NaOH) content of the material, as received, will be determined by specific gravity.

Bidder will submit temperature corrected specific gravity charts or graphs for 50% and/or 24-28% caustic soda solution supplied under terms of this contract. Dry weight received will be computed on the basis of the dry material present in the shipment according to the following formula:

W x P

____________ = Dry Weight NaOH where:

0.76

W = Weight of shipment and P = Percentage Na20 as determined by Section 4.2 of AWWA B501-98.

6.0 QUALITY:

6.1 The 50% and/or 24-28% caustic soda solution supplied under terms of this proposal shall contain no inorganic or organic substances in quantities capable of producing deleterious or injurious effects upon the health of those consuming water treated with it, nor shall it contain any substances which react with source or process waters to produce a substance which could be deleterious or injurious to the health of the consumer. For this purpose, an injurious or deleterious effect is defined as causing the concentration of any one (1) of the chemical substances regulated in drinking water by the United States Environmental Protection Agency (USEPA) and/or Texas Commission on Environmental Quality (TCEQ) to exceed the Maximum Contaminant Level, established and in effect at the time of delivery, for that substance, or cause a significant increase in the concentration of that substance over levels currently observed.

6.2 In any regard, 50% and/or 24-28% caustic soda solution supplied by Supplier shall, in all respects, meet the current

standard specification of the American Water Works Association (AWWA B501-98 or latest revision) and/or the current edition of the Water Chemical Codex, whichever is more restrictive.

7.0 AFFIDAVIT OF COMPLIANCE:

Bidder shall submit, as part of the "ATTACHMENTS TO BID" and AFFIDAVIT OF COMPLIANCE, signed by a responsible officer of the Bidding Firm, stating the product to be supplied complies with specifications stated in the AWWA STANDARD FOR CAUSTIC SODA (AWWA B501-98 and the "SPECIAL REQUIREMENTS FOR 50% and/or 24-28% CAUSTIC SODA SOLUTION" as set forth herein. If not supplied as an attachment to bid proposal, bidder must supply the aforementioned documents within five (5) working days of request by the City of Houston. Failure to supply the requested documentation will be just cause to reject bid.

REST OF PAGE LEFT INTENTIONALLY BLANK

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 8.0 CHEMICAL COMPOSITION AND PHYSICAL PROPERTIES FOR 50% CAUSTIC SODA SOLUTION:

8.1 In all instances, delivered 50% caustic soda shall be certified by NSF Standard 60, and meet the following criteria at a minimum. Materials having characteristics greater than the specified maximum, or less than the specified minimum shall be rejected by the City for failing to meet these specifications, and the shipment returned to the Supplier at Supplier's expense.

8.2 Bid samples, submitted as a requirement of the bid review and award process, found to fail these specifications

shall be deemed as unacceptable for consideration, and form the basis for rejection of the Bid.

Parameter Test Method Specification Maximum Minimum Percent NaOH Temperature Corrected Specific Gravity 52% by

weight 48% by weight

Total Alkali (Na20) AWWA STANDARD B501-98 SECTION 5.3

41% by weight

37% by weight

Total Hydroxide AWWA B501-98 SECTION 5.4

52% by weight

48% by weight

Sodium Carbonate AWWA B501-98 SECTION 5.5

2% by weight

Specific Gravity 600 / 600 Hydrometer * 1.545

1.510

Arsenic Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Cadmium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 7 mg/kg

Chromium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Lead Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Mercury Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 1 mg/kg

Selenium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 7 mg/kg

Silver Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

CONCENTRATIONS CALCULATED ON THE BASIS OF NaOH (Dry weight). Suspended Solids and insoluble material

No unusual suspended solids, compared to bid sample, capable of restricting observation of rotameters or other flow gauging devices

Concentration of Organic Compounds

EPA Methods 502, 524, 525 & 619 **

Physical State Transparent, free flowing, viscous liquid, Color Visual Inspection Colorless (water white)

No unusual color Odor

Odor panel Having no uncharacteristic odors indicative of potential contamination.

**Shall contain no contaminant in an amount sufficient to increase the concentration of any contaminant regulated, at the time of delivery, above current levels in drinking water, or cause any violation of a Maximum contaminant Level.

* Supplier shall furnish, with the bid sample, appropriate temperature compensated specific gravity correction chart or nomograph to be used in Product and Bid sample testing.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 9.0 CHEMICAL COMPOSITION AND PHYSICAL PROPERTIES FOR 24-28% CAUSTIC SODA SOLUTION:

9.1 In all instances, delivered 24-28% caustic soda shall be certified by NSF Standard 60, and meet the following criteria at a minimum. Materials having characteristics greater than the specified maximum, or less than the specified minimum shall be rejected by the City for failing to meet these specifications, and the shipment returned to the Supplier at Supplier's expense.

9.2 Bid samples, submitted as a requirement of the bid review and award process, found to fail these specifications

shall be deemed as unacceptable for consideration, and form the basis for rejection of the Bid.

Parameter Test Method Specification Maximum Minimum Percent NaOH Temperature Corrected Specific Gravity 28% by

weight 24% by weight

Total Alkali (Na20) AWWA STANDARD B501-98 SECTION 5.3

22% by weight

19% by weight

Total Hydroxide AWWA B501-98 SECTION 5.4

28% by weight

24% by weight

Sodium Carbonate AWWA B501-98 SECTION 5.5

2% by weight

Specific Gravity 600 / 600 Hydrometer * 1.3086

1.276

Arsenic Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Cadmium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 7 mg/kg

Chromium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Lead Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

Mercury Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 1 mg/kg

Selenium Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 7 mg/kg

Silver Standard Methods, 20th Edition-Methods 3030, 3111, 3112, 3113

< 30 mg/kg

CONCENTRATIONS CALCULATED ON THE BASIS OF NaOH (Dry weight). Suspended Solids and insoluble material

No unusual suspended solids, compared to bid sample, capable of restricting observation of rotameters or other flow gauging devices

Concentration of Organic Compounds

EPA Methods 502, 524, 525 & 619 **

Physical State Transparent, free flowing, viscous liquid, Color Visual Inspection Colorless (water white)

No unusual color Odor

Odor panel Having no uncharacteristic odors indicative of potential contamination.

**Shall contain no contaminant in an amount sufficient to increase the concentration of any contaminant regulated, at

the time of delivery, above current levels in drinking water, or cause any violation of a Maximum contaminant Level.

* Supplier shall furnish, with the bid sample, appropriate temperature compensated specific gravity correction chart or nomograph to be used in Product and Bid sample testing.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA: CONTINUED 10.0 SILENCE OF SPECIFICATIONS:

The apparent silence of these specifications as to any detail, or the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning that only the best commercial practice is to prevail and that only material and workmanship of the finest quality are to be used. All interpretations of these specifications shall be made on the basis of this statement. The Bidder shall be an established Supplier of the items bid.

11.0 SPECIFIED MATERIAL, OR EQUIVALENT:

11.1 Wherever in the specifications any materials or processes are indicated or specified by patent of proprietary name

and/or by name of manufacturer, such specifications shall be deemed to be used for the purpose of facilitating descriptions of the performance, materials and/or processes desired and shall be deemed to be followed by the words, "or equivalent", if not so stated in the specifications herein.

11.2 The burden of proof shall rest with the Bidder, in the course of a technical evaluation, to prove that the proposed

item(s) are equivalent to the performance, materials, processes, or articles specified. DETERMINATION AS TO WHETHER THE ITEM(S) BID IS(ARE) EQUIVALENT TO THOSE SPECIFIED SHALL REST SOLELY WITH THE CHEIF PROCUREMENT OFFICER AND THE RECEIVING DEPARTMENT.

REST OF PAGE LEFT INTENTIONALLY BLANK

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OFFICIAL CERTIFIED ANALYSIS SHEET FOR CHEMICAL, CAUSTIC SODA (ITEM NO. 1):

CITY OF HOUSTON

CERTIFIED ANALYSIS FOR ITEM NO. 1 CHEMICAL, CAUSTIC SODA, SODIUM HYDROXIDE – 50%

PUBLIC WORKS AND ENGINEERING DEPARTMENT This sheet must be submitted in duplicate with the bid samples within ten (10) working days of request. This is a mandatory requirement, even if bidding as specified. PARAMETER CONCENTRATION Percent NaOH _________% by weight Total Alkali (Na20) _________% by weight

Total Hydroxide (Including NaOH) _________% by weight

Sodium Carbonate (Na2C03 ) _________% by weight

Specific Gravity corrected to 60o F _________ Arsenic _______ppm Cadmium _______ppm Chromium _______ppm Lead _______ppm Mercury _______ppm Selenium _______ppm Silver _______ppm Additional analyses may be required prior to bid award as deemed necessary by the City of Houston. Source of Supply:_________________________ Laboratory:_________________ Supplier: _________________________ Analyzed By:________________ Supplier Representative:__________________ Certified By:_______________ __________________________________________ Title:______________________ Signature

Address:____________________ Telephone:__________________ All bidders agree by their participation in the bidding process to supply the User Department WITHIN 10 WORKING DAYS OF REQUEST, ONE CERTIFIED ANALYSIS, performed by a third party independent analytical laboratory, and signed by said laboratory's management and analysts. Such analysis is to be used, if deemed necessary, by User Department, for comparative purposes with other bid submittals. (The Original completed Certified Analysis shall be submitted as detailed in the Bid Sample specification.)

08/16 of 37

OFFICIAL CERTIFIED ANALYSIS SHEET FOR CHEMICAL, CAUSTIC SODA (ITEM NO. 2) CONTINUED:

CITY OF HOUSTON

CERTIFIED ANALYSIS FOR ITEM NO. 2 CHEMICAL, CAUSTIC SODA, SODIUM HYDROXIDE – 24-28%

PUBLIC WORKS AND ENGINEERING DEPARTMENT This sheet must be submitted in duplicate with the bid samples within ten (10) working days of request. This is a mandatory requirement, even if bidding as specified. PARAMETER CONCENTRATION Percent NaOH _________% by weight Total Alkali (Na20) _________% by weight

Total Hydroxide (Including NaOH) _________% by weight

Sodium Carbonate (Na2C03 ) _________% by weight

Specific Gravity corrected to 60o F _________ Arsenic _______ppm Cadmium _______ppm Chromium _______ppm Lead _______ppm Mercury _______ppm Selenium _______ppm Silver _______ppm Additional analyses may be required prior to bid award as deemed necessary by the City of Houston. Source of Supply:_________________________ Laboratory:_________________ Supplier: _________________________ Analyzed By:________________ Supplier Representative:__________________ Certified By:_______________ __________________________________________ Title:______________________ Signature

Address:____________________ Telephone:__________________ All bidders agree by their participation in the bidding process to supply the User Department WITHIN 10 WORKING DAYS OF REQUEST, ONE CERTIFIED ANALYSIS, performed by a third party independent analytical laboratory, and signed by said laboratory's management and analysts. Such analysis is to be used, if deemed necessary, by User Department, for comparative purposes with other bid submittals. (The Original completed Certified Analysis shall be submitted as detailed in the Bid Sample specification.)

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CHEMICAL, CAUSTIC SODA (CONTINUED):

BIDDER’S QUESTIONNAIRE In order to receive bid award consideration, the bidder must be able to demonstrate that they are currently providing or have had at least one contract, as a prime supplier, for delivering CHEMICAL, CAUSTIC SODA that is similar in size and scope to this solicitation. The reference(s) should be included in the space provided below. Please attach another piece of paper if necessary. If references are not included with the bid, the bidder shall be required to provide such references to the City of Houston within five working days from receipt of a written request from the City of Houston to do so. Bidder’s capability and experience shall be a factor in determining the Supplier’s responsibility. Bidder must have references documenting that it has delivered CHEMICAL, CAUSTIC SODA. 1. Name: __________________________________________________________________________________ Address: ________________________________________________________________________________ City & State: _____________________________________________________________________________ Name & Phone Number of Contact: _____________________________ Years of Services: _____________ 2. Name: __________________________________________________________________________________ Address: ________________________________________________________________________________ City & State: _____________________________________________________________________________ Name & Phone Number of Contact: _____________________________ Years of Services: _____________ 3. Name: __________________________________________________________________________________ Address: ________________________________________________________________________________ City & State: _____________________________________________________________________________ Name & Phone Number of Contact: _____________________________ Years of Services: _____________ In addition to providing references for similar work and size, the following must be addressed within 10 working days of request by the City of Houston: The City of Houston has chosen Dun& Bradstreet (D&B) to assist with the evaluation process of the contract award in two specific areas, past supplier performance and financial and operational stability. This is accomplished through your provision of requested information to D&B and our review of two (2) D&B reports:

1. Past Performance Evaluation

This report will provide an overall rating and reliability, cost, order accuracy, delivery/timeliness, quality, order accuracy, business relations, personnel, customer support and responsiveness. To assist in the development of this report, all bidders must complete the attached forms in Section Four (4). This includes the submittal of twenty (20) business references. Completed forms are to be submitted to D&B’s fulfillment partner, Open Ratings.

2. Supplier Evaluation Report

This report will provide an independent, third-party overview of your financial and operational stability. You are not required to provide D&B with any information for this report. It is mandatory that you order and pay for these reports, as well as, submit proof of having ordered them with your bid document to be considered for this contract. The cost of the two reports is $225.00 Because the Past Performance Evaluation report will take approximately 10-15 days after receipt of order form to complete, bidders are encouraged to submit their request to D&B in a timely fashion.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA FOR THE PUBLIC WORKS & ENGINEERING DEPARTMENT (CONTINUED):

Past Performance Evaluation (PPE) Order Form

To order, complete the attached forms and fax or e-mail them to:

Open Ratings, Inc. eFAX: 866-743-4239

E-MAIL: [email protected] ATTN: Mary Kelly, Past Performance Evaluation Fulfillment

SECTION ONE: ABOUT YOUR COMPANY

Enter name and contact information for the company on which the past performance evaluation/supplier evaluation report is to be prepared:

(COMPANY NAME)

(DUNS NUMBER)

(STREET ADDRESS) (CITY, STATE, ZIP)

(YOUR NAME)

(TITLE) (E-MAIL ADDRESS) (COMPANY PHONE NUMBER) (COMPANY FAX NUMBER)

If you don’t know your company’s DUNS number, call (800) 333-0505 or look it up online at: http://www.dnb.com/dunsno/dunsno.htm.

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA FOR THE PUBLIC WORKS & ENGINEERING DEPARTMENT (CONTINUED): SECTION TWO: REPORT RECIPIENTS One copy of the past performance evaluation and supplier evaluation report will be sent to the individual listed in Section 1. One additional copy will be sent to the agency specified below (additional copies of the PPE can be sent to additional recipients for a fee of $25 per additional recipient – attach additional sheets as necessary):

(AGENCY NAME) (COMPANY NAME)

(AGENCY STREET ADDRESS) (COMPANY STREET ADDRESS)

(CITY, STATE, ZIP) (CITY, STATE, ZIP)

(AGENCY PHONE NUMBER) (COMPANY PHONE NUMBER)

(AGENCY FAX NUMBER) (COMPANY FAX NUMBER)

(CONTACT NAME/ATTENTION) (CONTACT NAME/ATTENTION)

(E-MAIL ADDRESS) (E-MAIL ADDRESS) RFP #: RFP #:

SECTION THREE: PAYMENT INFORMATION ENCLOSED PLEASE FIND MY COMPANY CHECK BILL TO MY CREDIT CARD:

AMERICAN EXPRESS VISA MASTERCARD

CARD NUMBER: EXP. DATE:

SIGNATURE: I AGREE TO PAY $225 FOR THE PREPARATION/DISTRIBUTION OF MY PAST PERFORMANCE EVALUATION AND SUPPLIER EVALUATION REPORT, COPIES OF WHICH WILL BE PROVIDED BOTH TO MY COMPANY AND ONE RECIPIENT IDENTIFIED IN SECTION TWO ABOVE. I ALSO AGREE TO PAY $25 FOR EACH ADDITIONAL PPE COPY THAT I HAVE REQUESTED BE DISTRIBUTED TO ADDITIONAL RECIPIENTS IDENTIFIED IN SECTION TWO. QUESTIONS? CONTACT OPEN RATINGS AT (617) 232-9660

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA FOR THE PUBLIC WORKS & ENGINEERING DEPARTMENT (CONTINUED): SECTION FOUR: CUSTOMER REFERENCES PLEASE PROVIDE INFORMATION ON 20 RECENT CUSTOMERS TO BE SURVEYED (COMPANIES

WITH WHICH YOU HAVE DONE BUSINESS WITHIN THE PAST 1 YEAR) 1. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

2. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

3. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

4. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

5. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

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TECHNICAL SPECIFICATIONS FOR CHEMICAL, CAUSTIC SODA FOR THE PUBLIC WORKS & ENGINEERING DEPARTMENT (CONTINUED): SECTION FOUR: CUSTOMER REFERENCES (CONTINUED)

6. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

7. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

8. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

9. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

10. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

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11. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

12. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

13. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

14. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

15. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

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16. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

17. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

18. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

19. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

20. CUSTOMER NAME:

DUNS NUMBER:

CITY/STATE:

NAME OF CONTACT:

PHONE: FAX:

E-MAIL:

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SECTION C

CITY OF HOUSTON GENERAL TERMS AND CONDITIONS FOR


PUBLIC WORKS AND ENGINEERING DEPARTMENT

1.0 TERM OF AWARD:

1.1 The awarded bid's term shall be for a Thirty Six (36) month with two one year option periods beginning on the date specified in the Notice of Award Letter, with two twelve month option periods to renew for a total term of sixty (60) months. During this period, purchase orders will be issued for items as needed. Any conflict between the terms and conditions as specified herein and said purchase orders; the term and conditions of this document shall govern. The awarded Supplier will not perform the specified services without first having received an official City of Houston purchase order. While it is the intent to procure goods/services by issuing an Official City of Houston Purchase Order, there will be instances when a Purchasing Card (P-Card) or Petty Cash may be used. The City requires that the awarded prices be honored on all purchases.

1.2 It is emphasized that the City of Houston does not guarantee to purchase any specific quantity of any item listed

during the period of the award; rather, the quantities may vary depending upon the actual needs of the user departments. Supplier shall remain obligated to the City under all clauses of the Award that expressly or by their nature extend beyond and survive the expiration or termination of the Award, including but not limited to warranties and indemnity provisions hereof.

THIS IS A (36) MONTH TERM WITH TWO TWELVE (12) MONTH RENEWAL OPTION PERIODS TO RENEW

2.0 SITE VISIT

When deemed necessary an inspection may be made by the Public Works & Engineering Department (PW&E) to determine whether a bidder actually has a facility at the location they have listed in the bid document.

3.0 POST AWARD MEETING Once the contract has been approved by City Council, PW&E will schedule a Post Award Meeting with the successful Supplier and PW&E end users. This meeting will include procurement, PW&E contacts, vendor invoicing, vendor payment and all other matters related to contract administration.

4.0 SUPPLIER’S DUTY TO PAY:

Supplier shall make timely payments to all persons and entities supplying labor, materials or equipment for the performance of this award. Supplier agrees to protect, defend, and indemnify the City from any claims or liability arising out of Supplier’s failure to make such payments. (Disputes relating to payment of MWBE subcontractors shall be submitted to arbitration in the same manner as any other disputes under the MWBE subcontract. Failure of the Supplier to comply with the decisions of the arbitrator may, at the sole discretion of the City, be deemed a material breach leading to termination of this award).

5.0 OPTIONAL EXTENSION:

5.1 Upon expiration of the Awarded Term, the term will be automatically renewed for two successive one-year terms on the same terms and conditions. If the Director/Chief of the City Department elects not to renew this Award, the City Purchasing Agent shall notify the supplier in writing of the non-renewal at least 30-days before the expiration of the then current term.

5.2 Subject to the availability of funding, this Award may be extended on month-to-month basis upon acceptance

of the Supplier beyond the initial term.. A price increase, subject to the provisions of the Award, may be requested by the Supplier for approval by the Cheif Procurement Officer at this time. If the price increase is approved by the Cheif Procurement Officer or if no price increase is requested, a letter of extension will be issued by the Cheif Procurement Officer for the Supplier's acceptance under the same terms and conditions as the existing award.

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6.0 PRICE ADJUSTMENTS

6.1 Price Adjustment (Bid Opening)

Price adjustments (price increases or decreases) will be established using the most recently published price by the IHSGlobal-CMAI for Caustic Soda “Average Acquisition Price (AAP) – FOB US Gulf Coast at the time of the bid opening. The Supplier's cost to the City for caustic soda will be adjusted by the percentages of the actual amount of these reported monthly increases and/or decreases in caustic soda from the time of the bid opening.

6.2 Price Adjustment Percentage The price adjustment percentage will be applicable only to the cost of caustic soda. Suppliers will provide all other associated costs on a separate bid line. The final price to the City of Houston will be the bid price of the caustic soda plus the associated costs.

6.2.1 Example: Bid opening Date: January 21, 2010 Most Recent CMAI Price December 31, 2009 $220.00/dst Caustic Bid Price January 21, 2010 $190.00/dst Other Associated Costs (Year 1) $16.00/dst CMAI (AAP) January 31, 2010 $245.00/dst (AAP) Price Change $ 25.00/dst This is a 11.36% increase ($25.00/$220.00) New Price Effective February 1, 2010 $211.58/dst

($190.00 x .1136 = $21.58 increase) ($190.00 + $21.58 = $211.58)

Purchase price February 1, 2010 = Caustic Price ($211.58) + Associated Costs ($16.00) =$227.58/dst

6.3 Price Adjustments (Ongoing)

Price adjustments will be based upon the percentage change of the Average Acquisition Price (AAP) for Caustic Soda during each month following the bid opening date and adjusted (increase or decrease) to the preceding month’s purchase price.

6.3.1 Example:

Price Paid by COH February 2010 $211.58/dst CMAI (AAP) February 28, 2010 $280.00/dst (AAP) Price Change $ 35.00/dst This is a 14.28% increase ($35.00/$245.00) New Price Effective March 1, 2010 $214.77/dst ($221.58 x .1428 = $30.21) ($211.58 + $30.21 = $241.79) Purchase price March 1, 2010 = Caustic Price ($241.79) + Associated Costs ($16.00) =$257.79/dst

6.3.2 Example: Price Paid by COH March 2010 $241.79/dst

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CMAI (AAP) March 31, 2010 $295.00/dst (AAP) Price Change $ 15.00/dst This is a 5.35% increase ($15.00/$280.00) New Price Effective April 1, 2010 $254.73/dst ($241.79 x .0535 = $12.94) ($241.79 + $12.94 = $254.73) Purchase price April 1, 2010 = Caustic Price ($254.73) + Associated Costs ($16.00) = $270.73/dst

6.4 Price Adjustment Mechanism:

The price change mechanism will be based on the change in caustic contract prices per dry short ton, as reported monthly by the IHSGLobal-CMAI (Chemical Market Associates, Inc.) “Avg. Acquisition FOB USGC” for the month. The awarded bid proposal’s price adjustment will be initiated on the percentage of the dollar amount increase or decrease basis as a result of the change in CMAI contract prices for caustic soda for the reporting period. (See above examples.)

6.5 Price Adjustment:

The Cheif Procurement Officer will approve/make the price adjustment to the City’s current acquisition price on the first business day of each month. For all purposes in this document, the IHSGLobal-CMAI (Chemical Market Associates, Inc.) “Avg. Acquisition FOB USGC” may also be referred to as the CMAI price index, CMAI (AAP) or the CMAI Global Chlor-Alkali Market Report.

6.5.1 If the Cheif Procurement Officer approves the price increase, he/she shall notify Supplier in writing. No

price increase will be effective until Supplier receives this notice. If the Cheif Procurement Officer does not approve Supplier’s price increase.

6.5.2 Supplier may terminate its performance under the contract upon sixty (60) days advance written notice to the Cheif Procurement Officer upon notification of denial. Such letter shall be sent to the following address:

Cheif Procurement Officer City of Houston PO BOX 1562 Houston, Texas 77251

6.5.3 If at any time, the Cheif Procurement Officer determines that the City can obtain the same item at a lower price from a different source without violating the State bid laws, the City may then purchase the item from the lower price source without any obligation to the Supplier.

7.0 INVOICING:

7.1 In order to expedite payment all invoices must be submitted and itemized as to quantity, part number, description, and applicable discount (if any) in the same order and form as in the City of Houston Purchase Order. Variations will only delay payment. In addition, invoices must show the name of the Department, Division or Section, to which the merchandise was delivered, and the City of Houston Purchase Order Number. Invoicing package must also include weight tickets and/or independent laboratory, where applicable.

7.2 All delivery tickets must have a description of the commodity delivered.

7.3 Mail invoices to:

COH Department of Public Works and Engineering Fin. Business Office, Accounts Payable P.O. Box 3685, Houston, Texas 77251-3685. Electronic copies of invoices only (no supporting documents attached), should also be sent to the following electronic mailbox: [email protected].

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7.4 Delivery tickets and packing slips shall contain the same information as the invoice, and must be signed by the receiving employee, and must show his/her City employee number.

8.0 LIQUIDATED DAMAGES:

All prospective bidders are hereby notified that the Department's specified product deliver time is important to plant operations and scheduling. Late deliveries will cause damage to the City. As such, late deliveries shall be subject to liquidated damages of one percent per day of the total dollar amount of the subject quantity in the specific purchase order, or quantity of materials requested for delivery specified on one order. Liquidated damages shall apply for all days past the specified days for delivery after receipt of the quantity specified in the purchase order, or date of requested delivery under a blanket purchase order.

9.0 PAYMENT:

9.1 Payment is due thirty (30) days after the City has approved the invoice or after the City has accepted the goods, whichever occurs later. Invoices not in compliance with the conditions set forth herein shall be returned for correction and may result in payment being delayed.

9.2 If the City disputes any item in an invoice the Supplier submits for any reason, including lack of supporting

documentation, the Department, Division or Section shall temporarily delete the disputed item and recommend the remainder of the invoice for payment. The Department, Division or Section shall promptly notify the Supplier of the dispute and request remedial action. If the dispute is settled in favor of the Supplier, the Supplier shall include the disputed or settled amount on a subsequent regularly scheduled invoice or a special invoice for the disputed or settled item only.

9.3 Early Payment Discount

9.3.1 The City of Houston’s standard payment term is to pay 30 days after approval of invoice or receipt of goods and services, whichever is later, according to the requirements of the Texas Prompt Payment Act (TX. Gov’t Code, Ch. 2251). However, the City will pay in less than 30 days in return for an early payment discount from vendor as follows:

Payment Time - 10 Days: 2% Discount Payment Time - 20 Days: 1% Discount

9.3.2 A Contractor may elect not to offer not to offer a discount for early payment and the City will make

payment net 30 days. Discounts will not be considered in the award evaluation.

9.3.3 If the City fails to make a payment according to the early payment schedule above, but does make payment within the time specified by the Prompt Payment Act, the City shall not receive the discount, but shall pay no other penalty. When the payment date falls on a Saturday, Sunday or official holiday when City offices are closed and the City business is not expected to be conducted, payment may be made on the following business day.

10.0 ESTIMATED QUANTITIES NOT GUARANTEED:

The estimated quantities specified herein are not a guarantee of actual quantities, as the City does not guarantee any

particular quantity of caustic soda will be purchased during the term of this agreement. The quantities may vary depending upon the actual needs of the user Department. The quantities specified herein and on the electronic bid document are good faith estimates of usage during the term of this agreement. Therefore, the City shall not be liable for any contractual agreements/obligations the Contractor enters into based on the City purchasing/requiring all the quantities specified herein and in the electronic bid document.

11.0 CONTAMINATED MATERIALS:

Each Supplier shall be required to identify their source of supply. No material will be accepted from a hazardous or toxic waste site, regardless of whether the site has been identified by either a Local, State or Federal Agency. No contaminated, toxic, hazardous waste products or heavy metal product shall be contained in these deliveries. If any material, supplied to the City via an issued purchase order, is found to be contaminated or contain heavy metal products, it will be the responsibility of the Supplier to remove and replace the contaminated product at their expense and at no cost to the City. The City has the option to arrange the removal of any contaminated material and charge back the Supplier any and all costs involved.

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12.0 INSPECTIONS AND AUDITS:

12.1 The City reserves all rights to review all payments made to Suppliers by auditing at a later date. Subject to such audit, any overpayments may be recovered from the Supplier.

12.2 Representatives of the City have the right to examine the books of all suppliers supplying goods and/or services

under the issued purchase order insofar as those books and records relate to performance under the issued purchase order.

12.3 City representatives may have the right to perform, or have performed, (1) audits of Supplier's books and records,

and (2) inspections of all places where work is undertaken in connection with the issued purchase order. Supplier shall keep its books and records available for this purpose for at least three years after this Award terminates. This provision does not affect the applicable statute of limitations.

13.0 DELIVERY:

13.1 The Supplier agrees to make deliveries only “after" receipt of duly signed and approved Purchase Orders issued

by the City of Houston Cheif Procurement Officer, "and only after ordered by an authorized representative of the user department."

13.2 Deliveries will be made to the following facilities or other City sites or locations which may become necessary:

13.2.1 East Water Purification Plant I & III - 2300 Federal Road, Houston, TX 77015 Deliveries to the East Water plant must be faxed over 24 (twenty four) hours before delivery to Fax # 713- 450-5137. In the event there is a delay in delivery, Jonathan Joseph at 832-256-2374 or Deborah Thornton at 832-395-2844.

13.2.2 Southeast Water Purification Plant - 3100 Genoa Red Bluff, Houston, TX 77034

Deliveries to the Southeast Water plant must be faxed over 24 (twenty four) hours before delivery to Fax # 281-487-6951 or 281-487-7671. In the event there is a delay in delivery, contact Diane Hunt at 832-395- 5660 or Deborah Thornton at 832-395-2844.

13.2.3 Northeast Water Purification Plant – 12121 North Sam Houston Parkway East, Humble, TX 77396 Deliveries to the Northeast Water plant must be faxed over 24 (twenty four) hours before delivery to Fax # 832-395-3798. In the event there is a delay in delivery, contact Scott Barker at 832-395-3769. If Mr. Barker is unavailable, the supplier may contact either Drew Molly (Assistant Director) at 713-503-8296 or Russell Holley (Operations Manager) at 713-775-2608.

13.2.4 69th Street Wastewater Operations – 2525 S. Sgt. Macario Garcia, Houston, Texas 77020

Deliveries to Wastewater Operations must have the driver call one (1) hour before delivery to Wastewater Control at 832-395-4955 or 832-4955-4956. Call the same numbers if there is a delay in the delivery.

13.2.5 All delivery confirmations faxed to the Water Purification Plants must have the driver’s name, truck

number, trailer number, and seal numbers. If any of the information should change, the new information must be refaxed ASAP for delivery.

13.2.6 Deliveries shall be made at such intervals as required, against Purchase Orders issued by the User

Department. Deliveries shall be made using rear discharge trailers only as stated in the Technical Specifications 5.2. In the event a side discharge trailer comes into a plant, the load and trailer will be rejected and it must be replaced on the same day.

13.2.7 It is the responsibility of the Supplier to ensure that the carrier has all necessary equipment such

as tools, fitting, hoses, coupling, and off-loading equipment to effect a safe and timely unloading so as not to disrupt routine plant operations.

13.2.7.1 The Supplier must ensure that carrier vehicles are equipped with a suitable vehicle mounted pump to allow for product offloading, including a 2" discharge hose and a fifty foot 1" air hose with crows feet on each end.

13.2.7.2 Unloading hoses shall be maintained with caps covering at all times other than

when offloading to prevent debris from entering loading system.

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13.2.7.3 Offloading shall be done by and at the Supplier’s expense. The City of Houston's chemical offloading equipment is to be used for backup or emergency use only. The City will not be responsible for demurrage charges resulting from use of City offloading equipment in lieu of adequate carrier offloading equipment.

13.2.7.4 The Supplier assumes responsibility and liability for damage to any City property, including

but not limited to chemical offloading equipment, gates, vehicles, concrete, and storage tanks.

13.3 Deliveries are to be made to the appropriate City facilities between the hours of 7:30 a.m. and 3:30 p.m.,

Monday through Friday, with standard provisions to be made for deliveries on holidays and weekends, during these same hours, and during periods of high product demand. There can be no extra charges to the City for Pre-Loaded trailers or Weekend and Holiday deliveries if deliveries are requested for these times.

13.4 The successful Bidder must make adequate provisions for product supply and transportation, and must maintain close contact with user department at all times.

13.5 Orders will normally be placed to allow a number of calendar days for delivery. However the Supplier must

be able to deliver within twenty-four (24) hours when required in an emergency and outside of the above listed normal delivery hours.

13.6 Delivery personnel must check in at the designated administrative building upon arrival at the respective plants and must provide all required paperwork to designated plant personnel for each delivery prior to offloading. Delivery personnel must remain outside of the vehicle to monitor the entire offloading process, and must remain within 50 feet of the offloading station and in an unobstructed view of the offloading station.

13.7 It shall be the responsibility of the Supplier to make arrangements, and assume all financial obligations,

including analytical costs, for the prompt clean-up and disposal of all contaminated product and associated chemical, unloading, storage, and feed systems at the affected user site, if the source of such contamination is found, subsequent to initial acceptance, to originate with any individual, or series of chemical deliveries.

13.8 All clean up and disposal activities will be conducted in a manner consistent with the best available

technology and conform to all local, state, and federal regulations. The Supplier shall assume the responsibility as the generator of such contaminated material, along with all inherent obligations to ensure proper disposal of contaminated material, and any responsibilities arising from future lawsuits or clean-up costs associated with disposal of such contaminated materials.

13.9 The Supplier's carrier is responsible for containment and cleanup of any product material released during

offloading. The offloading area is to be free of any product material after offloading has been completed. The City reserves the right to delay final weighing of the carrier vehicle, at no cost to the City for demurrage or other costs, until any spilled product has been cleaned to the City's satisfaction or an acceptable agreement for cure has been reached between the Supplier and the City.

13.10 The Supplier's carrier must comply with site-specific safety training and regulations while in the plant. It will

be the responsibility of the supplier’s carrier to equip each vehicle entering the facility with appropriate personal protective equipment (PPE), such as safety shoes, safety glasses with side shields and NIOSH/MSHA approved respirators for the safe offloading and spill cleanup associated with normal offloading procedures. The City reserves the right to request the Supplier to replace any delivery personnel who refuses to comply with City regulations.

14.0 PRODUCT SAMPLING AND TESTING:

14.1 The quality of 50% and/or 24-28% Caustic Soda solution in each truck lot will be determined from the analysis of a sample collected upon arrival at the Point of Delivery for each truckload; at no time will a sample be taken without City Operation personnel present. The supplier may have a representative present at the time of sampling. Analysis is to be made under the direction of the City of Houston, Water Quality Control Laboratory, on-site, and the City's analysis shall be final and binding. Analysis, at a minimum, shall include specific gravity, percent NaOH, presence of excess visible suspended solids, unusual odor, and/or color. No product material is to be off-loaded until a determination is made by the laboratory staff that the shipment meets specifications.

14.2 The City may select samples twice per year from each plant, on a random basis, for analysis of inorganic and

organic constituents by an independent third party laboratory certified by the Laboratory Analysts Section of the

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Texas Water Utilities Association or by the Texas Commission on Environmental Quality Cost of analysis will be borne by the Supplier. Failure to comply with specifications, as confirmed by such independent third party analysis, may be grounds for termination for this Award. The cost of the analysis will be charged back to the supplier either by billing directly or deducting from the supplier’s invoice.

14.3 Any costs incurred to the Supplier for handling, transportation, and/or demurrage, etc. from any shipment rejected

by the on-site laboratory for failure to meet specifications, shall be the responsibility of the Supplier. The City shall, in no way be held liable for any charges associated with such rejected shipments.

14.4 It shall be the responsibility of the Supplier to make arrangements, and assume all financial obligations, including analytical costs, for the prompt clean-up and disposal of all contaminated product and associated chemical, unloading, storage, and process feed systems at the affected user site, if the source of contamination is found, subsequent to initial acceptance, to have originated from any individual, or series of individual 50% and/or 24-28% caustic soda solution deliveries. All clean-up and disposal activities will be conducted in a manner consistent with the best available technology, and conform to all local, state, and federal regulations for the management of hazardous wastes. The supplier assumes responsibility as the Generator of such contaminated material, along with all inherent obligations to insure proper disposal of contaminated material, and any and all responsibilities arising from future lawsuits or clean-up costs associated with disposal of such contaminated material.

15.0 CONTRACT COMPLIANCE

15.1 PW&E reserves the right to monitor this contract for compliance to ensure legal obligations are fulfilled and that acceptable levels of service are provided.

15.2 Monitoring may take the form of, but not necessarily limited to:

15.2.1 Site visits 15.2.2 Review of deliveries received for accuracy and timeliness 15.2.3 Review of contractor’s invoices for accuracy

15.3 The responsibility for monitoring compliance rests with the Contract Compliance Section, Management Support

Branch of the Office of the Director, Department of Public Works & Engineering. 16.0 WARRANTY:

The Bidder shall warranty that all 50% and/or 24-28% caustic soda solution delivered, by the successful Bidder, is of at least as good a quality as that of the sample submitted with his bid, within accepted analytical tolerance for error in determination.

17.0 BASIS FOR REJECTION:

17.1 The City of Houston may reject and refuse delivery of any truckload lot of caustic soda solution that is not within the specific maximum and minimum limits of the listed parameters as enumerated in the "QUALITY" specification section.

17.2 Such analyses shall be performed using recognized methods and procedures as detailed by the American Water

Works Association Standard B501-93, STANDARD METHODS FOR THE EXAMINATION OF WATER AND WASTEWATER, and/or USEPA approved methods for the analysis of portable water.

17.3 The City of Houston shall not be held to have accepted any truckload shipment until after the City's on-site

laboratory personnel have made their analysis of the material, and the City of Houston has had an opportunity to exercise its right of rejection.

17.4 In the event that a shipment is rejected for failure to meet specifications, the Supplier is to furnish an emergency

replacement shipment to the affected location within four (4) hours or as agreeable to the receiving department. Any additional expense associated with the replacement shipment over and above the contract price shall be at the expense of the supplier. In the event a replacement shipment causes City Operations and/or laboratory personnel to remain on overtime to receive and sample the replacement shipment, the Supplier shall reimburse the City the sum of fifty dollars ($50) per hour for each hour or portion of an hour after 3:30 P.M. that City personnel must remain on site to receive the replacement shipment.

18.0 Shipping Terms:

Prices shall be F.O.B. Destination to the delivery location designated herein or on a purchase order. The Supplier

shall retain title and control of all goods until they are delivered and off-loading is completed. All risk of transportation and all related charges shall be the responsibility of the Supplier. The Supplier shall file all claims

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for visible or concealed damage. The City will notify the Supplier promptly of any damaged goods and shall assist the Supplier in arranging for inspection.

19.0 MATERIALS:

The items furnished shall be the latest product in production to commercial trade, and shall be of the highest

quality as to materials used. The Supplier furnishing these items shall be experienced in the production of such items and shall furnish evidence of having supplied similar items, which have been in successful operation. The Bidder shall be an established Supplier of the items bid.

20.0 ADDITIONS & DELETIONS:

The City, by written notice from the Cheif Procurement Officer to the Supplier, at any time during the term of this award, may

add or delete like or similar equipment, supplies, locations and/or services to the list of equipment, supplies, locations, and/or services to be provided. Any such written notice shall take effect on the date stated in the notice from the City. Similar equipment, supplies, services, or locations added to the Award shall be in accordance with the awarded specification/scope of services, and the charges or rates for items added shall be the same as specified on the bid form. In the event additional equipment, supplies, locations and/or services are not identical to the item(s) already under the Award, the charges therefore will then be the Supplier's normal and customary charges or rates for the equipment, supplies, locations and/or services classified on the bid form.

21.0 FORCE MAJEURE:

21.1 Timely performance by both parties is essential to this award. However, neither party is liable for delays or other

failures to perform its obligations under this Award to the extent the delay or failure is caused by Force Majeure. Force Majeure means fires, floods, explosions, and other acts of God, war, terrorist acts, riots, court orders, and the acts of superior governmental or military authority. In case of emergencies, the Supplier will provide the City 24/7 contact information.

21.2 This relief is not applicable unless the affected party does the following:

21.2.1 uses due diligence to remove the Force Majeure as quickly as possible; and

21.2.2 provides the other party with prompt written notice of the cause and its anticipated effect.

21.3 The City may perform the awarded Bidder's functions itself or bid them out during periods of Force Majeure. Such

performance does not constitute a default or breach of this Award by the City.

21.4 If the Force Majeure continues for more than 30 days, the Cheif Procurement Officer or Director upon written authorization by the Cheif Procurement Officer may terminate this Award by giving 30 days' written notice to Supplier. This termination is not a default or breach of this Award. SUPPLIER WAIVES ANY CLAIM IT MAY HAVE FOR FINANCIAL LOSSES OR OTHER DAMAGES RESULTING FROM THE TERMINATION EXCEPT FOR AMOUNTS DUE UNDER THE AWARD AT THE TIME OF THE TERMINATION.

22.0 BID SAMPLE:

22.1 Upon request by the City, the Bidder is required to submit duplicate, one liter, bid samples of 50% and/or 24-28% Caustic soda solution in tightly capped glass containers. These samples must be representative of the material to be supplied and must be accompanied by the applicable Certified Analysis Sheet, using the attached forms. The Bid Samples and Certified Analysis Sheets are to be delivered to the City of Houston, Water Quality Control Laboratory, 2300 Federal Road, Houston, Texas 77015, between the hours of 8:00 a.m. and 3:00 p.m., Monday thru Friday within ten (10) working days of request by the City of Houston. Failure to supply the requested documentation will be just cause to reject bid. In addition, representative bid samples accompanied by the applicable Certified Analysis Sheets, may also be requested forwarded to the City of Houston, Wastewater Quality Control Laboratory Facility, 10,500 Bellaire Blvd., Houston, Texas 77072.

22.2 Each sample shall be labeled with the Bidder's name, Bid Invitation Number, and Bid Form Item Number. Should bidder(s) have any problems with submission of these samples, please contact the Water Quality Lab at (281) 450- 5142.

22.3 Before the successful Bidder is awarded, the City shall verify, by means satisfactory to itself, that the Bid sample submitted conform to specifications. Failure of the samples to meet any one of the requirements specified shall be sufficient grounds for rejection of the bid.

22.4 The "CERTIFIED ANALYSIS" shall be obtained from an independent third party analytical laboratory certified by the Laboratory Analysts Section of the Texas Water Utilities Association for the testing of contaminants in water and

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waste water, or by the Texas Commission on Environmental Quality (TCEQ) or other State Primacy Agency if other than Texas) for National Pollutant Discharge Elimination System compliance testing. If the laboratory is located outside the extra-territorial jurisdiction of the City of Houston, proof of laboratory certification may be required. Analyses to be performed are listed on the attached sheet, "CITY OF HOUSTON, CERTIFIED ANALYSIS FOR 50% and/or 24-28% caustic soda solution AWARD, FOR UTILITY OPERATIONS DIVISION, PUBLIC WORKS AND ENGINEERING DEPARTMENT".

23.0 DEMURRAGE:

The City will be responsible for demurrage on trucks only when such charges occur because of the City's negligence in the unloading of the material, and the unloading time exceeds two (2-1/2) hours in total plant time. Delays due to extended time required for sample analysis because of questions as to the quality of the sampled shipment are not to be considered negligent on the City's part and the City shall not be responsible for any demurrage charge incurred under such circumstance. It is the carrier's responsibility to properly document all demurrage charges. In addition to demurrage Other fees the City may be responsible for, if applicable, are:

Line item Description

Demurrage Fee: Supplier Charge after 2.5 hours of unloading time delay caused by the City.

Order Cancellation Fee: Supplier Charge for City's failure to provide notice of delivery cancellation at least 2.5 hours prior to scheduled delivery.

Re‐route Fee Supplier Charge for re‐route of scheduled delivery from one City of Houston plant to another.

Interplant Move Fee: Supplier charge for movement from one tank to another (split loads).

Re‐stocking Fee: Supplier charge for returned loads with seals still intact.

Re‐stocking Fee: Supplier charge for returned loads without seals intact.

24.0 COVER FOR NON-DELIVERY:

The Supplier agrees that if, for any reason, at any time, it shall be unable to deliver in quantities and/or quality ordered by the City of Houston under these specifications, and having been notified to make a shipment, shall have failed to deliver such a shipment after notification, then the City of Houston shall be authorized to purchase such material wherever available, and the Supplier agrees to pay the City of Houston the amount paid by it, over and above the bid price.

25.0 SUPPLIER SUPPLY OF SAFETY TRAINING:

The successful Bidder shall agree to supply as a result of participation in the bidding process, formal safety training sessions

to the user department at no additional cost. Such safety training sessions are to consist of the following:

25.1 A videotape, DVD, filmstrip, slide presentation or live trainer presentation on the general safe handling of the awarded bid material.

25.2 Coverage in such presentation of the main safety hazards and general information as covered in the SDS.

25.3 Coverage in such presentation of the general characteristics and behavior of the awarded bid material.

25.4 Such training sessions are to be conducted on site at the user department. At least two (2) such presentations of

sixty (60) minutes each shall be supplied to the user department during the first two (2) months of the bid award, and during the first (1st) month of each twelve (12) month period thereafter. Should the awarded bid be longer than twelve (12) months, but not be for a period that is an even multiple of twelve (12) months, the training shall be supplied within the first two (2) months of the last increment as well. The user department and Supplier shall agree on a training schedule within fifteen (15) days of the bid award.

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26.0 STOCKS AND WAREHOUSE FACILITIES:

26.1 In order to receive bid award consideration, the Bidder shall maintain sufficient stock(s) to fulfill normal City of Houston requirements as set forth herein. Bidder must demonstrate that he is able to secure all required product within a 24-hour period, and demonstrate access to sufficient production capacity to provide uninterrupted supply of 50% and/or 24-28% Caustic Soda solution during periods of peak usage.

26.2 An inspection may be made to determine whether bidder actually has access to sufficient capacity and stock.

Adequate stock inventory and production capacity shall be considered a factor in determining award. Adequate is defined as having, in stock, a storage capacity of two (2) weeks supply of caustic soda for each of the locations supplied.

26.3 Bidder must demonstrate he is able to secure all required product within a 48 hour period.

27.0 RELEASE AND INDEMNIFICATION:

27.1 RELEASE:

SUPPLIER RELEASES THE CITY, ITS AGENTS, EMPLOYEES, OFFICERS, AND LEGAL REPRESENTATIVES (COLLECTIVELY THE “CITY”) FROM ALL LIABILITY FOR INJURY, DEATH, OR DAMAGE TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH PERFORMANCE UNDER THIS AWARD, INCLUDING INJURY, DEATH, OR DAMAGE CAUSED BY THE CITY’S SOLE OR CONCURRENT NEGLIGENCE.

27.2 INDEMNIFICATION:

SUPPLIER SHALL DEFEND AND INDEMNIFY THE CITY, ITS AGENTS, EMPLOYEES, OFFICERS, AND LEGAL

REPRESENTATIVES (COLLECTIVELY, THE “CITY”) FOR ALL THIRD PARTY CLAIMS, LIABILITIES, FINES, AND EXPENSES (INCLUDING ALL DEFENSE COSTS AND INTEREST) FOR INJURY, DEATH, OR DAMAGE TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS AWARD INCLUDING THOSE CAUSED BY:

(1) SUPPLIER’S ACTUAL OR ALLEGED NEGLIGENCE OR INTENTIONAL ACTS OR OMISSIONS; (2) THE CITY’S AND SUPPLIER’S ACTUAL OR ALLEGED CONCURRENT NEGLIGENCE, WHETHER SUPPLIER

IS IMMUNE FROM LIABILITY OR NOT; AND (3) THE CITY’S AND SUPPLIER’S STRICT OR STATUTORY LIABILITY, WHETHER SUPPLIER IS IMMUNE FROM

LIABILITY OR NOT.

SUPPLIER SHALL DEFEND AND INDEMNIFY THE CITY DURING THE TERM OF THIS AWARD AND FOR FOUR (4) YEARS AFTER THE AWARD TERMINATES. SUPPLIER'S INDEMNIFICATION IS LIMITED TO $500,000 PER OCCURRENCE. SUPPLIER SHALL NOT INDEMNIFY THE CITY FOR THE CITY’S SOLE NEGLIGENCE.

27.3 INDEMNIFICATION PROCEDURES:

(1) Notice of Claims. If the City or Supplier receives notice of any claim or circumstances, which could give

rise to an indemnified loss, the receiving party shall give written notice to the other party within 10 days. The notice must include the following:

(a) a description of the indemnification event in reasonable detail, (b) the basis on which indemnification may be due, and (c) the anticipated amount of the indemnified loss.

The notice does not stop or prevent the City from later asserting a different basis for indemnification or a different amount of indemnified loss than that indicated in the initial notice. If the City does not provide this notice within the 10-day period, it does not waive any right to indemnification except to the extent that Supplier is prejudiced, suffers loss, or incurs expense because of the delay.

(2) Defense of Claims (a) Assumption of Defense Supplier may assume the defense of the claim at its own expense with counsel

chosen by it that is reasonably satisfactory to the City. Supplier shall then control the defense and any negotiations to settle the claim. Within 10 days after receiving written notice of the indemnification request, Supplier must advise the City as to whether or not it will defend the claim. If Supplier does not

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assume the defense, the City shall assume and control the defense, and all defense expenses constitute an indemnification loss.

(b) Continued Participation If Supplier elects to defend the claim, the City may retain separate counsel to participate in (but not control) the defense and to participate in (but not control) any settlement negotiations. Supplier may settle the claim without the consent or agreement of the City, unless it (i) would result in injunctive relief or other equitable remedies or otherwise require the City to comply with restrictions or limitations that adversely affect the City, (ii) would require the City to pay amounts that Supplier does not fund in full, (iii) would not result in the City’s full and complete release from all liability to the plaintiffs or claimants who are parties to or otherwise bound by the settlement.

27.4 WORKER'S COMPENSATION INSURANCE:

On any City Award with a labor component or any Award where Supplier delivery people make deliveries for City sites, Worker's Compensation Insurance as shown in the Insurance Section is required.

28.0 INSURANCE:

28.1 If performance of this Award requires Supplier to provide labor in addition to supplies, labor and materials, the Supplier shall have insurance coverage and furnish certificates of insurance showing the City as an additional insured, in duplicate form, prior to the beginning of the Award. The City shall be named as an additional insured on all such policies except Worker's Compensation. The issuer of any policy shall have a Certificate of Authority to transact insurance business in the State of Texas or have a Best's rating of at least B+ and a Best's Financial Size Category of Class VI or better, according to the most current edition of Best's Key Rating Guide, Property-Casualty United States. Comprehensive General Liability including Contractual Liability, Automobile Liability and Pollution Liability insurance shall be in at least the following amounts. Automobile Liability Insurance for autos furnished or used in the course of performance of this Award. Including Owned, Non-owned, and Hired Auto coverage. (Any Auto coverage may be substituted for Owned, Non-owned and Hired Auto coverage.) If no autos are owned by Supplier, coverage may be limited to Non-owned and Hired Autos. If Owned Auto coverage cannot be purchased by Supplier, Scheduled Auto coverage may be substituted for Owned Auto coverage. EACH AUTO USED IN PERFORMANCE OF THIS AWARD MUST BE COVERED IN THE LIMITS SPECIFIED - $1,000,000.00 Combined Single Limit.

28.2 $1,000,000.00 per occurrence; $2,000,000.00 aggregate, per 12-month policy period. Worker's Compensation

including Broad Form All States endorsement shall be in statutory amount.

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26.0 INSURANCE (CONTINUED):

28.3 All insurance policies required by this Award shall require on their face, or by endorsement, that the insurance carrier waive any rights of subrogation against the City, and that it shall give thirty (30) days written notice to the City before they may be cancelled. Within such thirty (30) day period Supplier, covenants that it will provide other suitable policies in lieu of those about to be cancelled so as to maintain in effect the coverage required under the provisions hereof. Failure or refusal of the Supplier to obtain and keep in force the above-required insurance coverage shall authorize the City, at its option, to terminate this Award at once.

28.4 ONLY UNALTERED ORIGINAL INSURANCE CERTIFICATES, EXCLUDING ANY ALTERATION AND INITIALS

REGARDING CANCELLATION WHICH IS MADE TO MEET CITY REQUIREMENTS, AS ENDORSED BY THE UNDERWRITER ARE ACCEPTABLE. PHOTOCOPIES ARE UNACCEPTABLE.

29.0 SUCCESSORS AND ASSIGNMENTS:

Supplier may not assign this Award or dispose of substantially all of its assets without the written consent of the Cheif Procurement Officer. Supplier’s failure to obtain such consent shall be an event of default, authorizing the Purchasing Agent to terminate this Award according to its terms.

30.0 MINORITY AND WOMEN BUSINESS ENTERPRISES:

30.1 These provisions apply to goal-oriented Awards. A goal-oriented Award means any City solicitation awarded for the supply of goods or non-professional services of approximately $100,000.00 for which competitive bids are required by law and which the Cheif Procurement Officer has determined to have City of Houston Certified MWBE subcontracting potential.

30.2 The City of Houston, through Ordinance No. 84-1309 and Council Motion 86-2204, encourages the participation of

Minority and Women Business Enterprises in the performance of City Awards. Pursuant to the aforesaid Ordinance and Council Motion, the City has classified the Award that will result from this bid as a Goal-Oriented Award and the recommended Supplier shall be required to make good faith efforts to subcontract at least 11% of the total dollar amount of this award ("City of Houston Certified MWBE goal") to either Minority Business Enterprises, Women Business Enterprises, or both, unless otherwise stated in the Bid Form or Specifications. The Cheif Procurement Officer with the concurrence of the Affirmative Action Director reserves the right to adjust upwards or downwards the designated percentage goal.

31.0 TAXES:

The City is exempt from the Federal Excise and Transportation Tax, and the limited Sales and Use Tax. Unless the Bid Form or Specifications specifically indicate otherwise, the price bid must be net exclusive of above-mentioned taxes, and will be so construed. A Supplier desiring refunds of, or exemptions from, taxes paid on merchandise accepted by the City, must submit the proper forms, and the Cheif Procurement Officer, if satisfied as to the facts, will approve or issue the necessary certificates.

32.0 30.0 AWARD:

32.1 The City reserves the right to consider and make awards of bids on articles of similar nature that will in all respects serve the purpose for which the purchase is being made. The City reserves the right to be the sole judge as to whether such articles will serve the purpose.

32.2 Unless otherwise specified, the City reserves the right to accept or reject in whole or in part any bid submitted or to waive any informality for the best interest of the City.

33.0 31.0 REJECTIONS:

33.1 Articles not in accordance with samples and specifications must be removed by the Supplier and at his expense. All disputes concerning quality of supplies delivered under this invitation to bid will be determined by the City Purchasing Agent or designated representative.

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REJECTIONS (CONTINUED):

33.2 All articles enumerated in the invitation to bid shall be subject to inspection on delivery by an officer designated for the purpose and of found inferior to the quality called for, or not equal in value to the Department’s samples, or deficient in weight, measurements, workmanship or otherwise, this fact shall be certified to the City Purchasing Agent who shall have the right to reject the whole or any part of the same.

34.0 BRAND NAME

Any manufacturer’s names, trade names, brand names, or catalog numbers used in the specifications are for the purpose of describing and establishing the general quality level, design and performance desired. Such references are not intended to limit or restrict bidding by other Suppliers, but are intended to approximate the quality design or performance, which is desired. Any bid, which proposes like quality, design or performance, will be considered. Equivalent products will be considered, provided a complete description and product literature is provided. Unless a specific exception is made, assumption will be that the item is bid exactly as specified on the Invitation to Bid.

35.0 CHANGE ORDER

35.1 At any time during the Awarded Bid Term, the Cheif Procurement Officer or Director upon written authorization by the Cheif Procurement Officer may issue a Change Order to increase or decrease the scope of services or change plans and specifications, as he or she may find necessary to accomplish the general purposes of this Award. The Supplier shall furnish the services or deliverables in the Change Order in accordance with the requirements of this Award plus any special provisions, specifications, or special instructions issued to execute the extra work.

35.2 The Cheif Procurement Officer or Director upon written authorization by the Cheif Procurement Officer will issue the

Change Order in substantially the following form:

CHANGE ORDER TO: [Name of Supplier] FROM: City of Houston, Texas (the "City") DATE: [Date of Notice] SUBJECT: Change Order under the Award between the City and [Name of Supplier] countersigned by

the City Controller on [Date of countersignature of the Award]

Subject to all terms and conditions of the Awarded Bid, the City requests that Supplier provide the following:

[Here describe the additions to or changes to the equipment or services and the Change Order Charges applicable to each.]

Signed:[Signature of Cheif Procurement Officer or Director upon written notice to the Cheif Procurement Officer]

35.3 The Cheif Procurement Officer or Director upon written authorization by the Cheif Procurement Officer may issue

more than one Change Order, subject to the following limitations:

35.4 Council expressly authorizes the Cheif Procurement Officer or Director upon written authorization by the City Purchasing Agent, to approve a Change Order of up to $50,000. A Change Order of more than $50,000 over the approved Award amount must be approved by the City Council.

35.4.1 If a Change Order describes items that Supplier is otherwise required to provide under this Award, the City is not obligated to pay any additional money to Supplier.

35.4.2 The Total of all Change Orders issued under this section may not increase the Original Award amount by

more than 25%.

35.5 Whenever the Supplier receives a Change Order, Supplier shall furnish all material, equipment, and personnel necessary to perform the work described in the Change Order. Supplier shall complete the work within the time prescribed. If no time for completion is prescribed, Supplier shall complete the work within a reasonable time. If the work described in any Change Order causes an unavoidable delay in any other work Supplier is required to perform under this Award, Supplier may request a time extension for the completion of the work. The City Purchasing Agent’s or Director’s decision regarding a time extension is final.

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CHANGE ORDER, (CONTINUED):

33.5 A product or service provided under a Change Order is subject to inspection, acceptance, or rejection in the same manner as the work described in the Original Award, and is subject to the terms and conditions of the Original Award as if it had originally been a part of the Award.

36.0 TERMINATION OF AWARD

36.1 By the City for Convenience:

The Cheif Procurement Officer may terminate this Award at any time upon 30-calendar days notice in writing to the Supplier. Upon receipt of such notice, Supplier shall, unless the notice directs otherwise, discontinue all services in connection with the performance of the Award and shall proceed to cancel promptly all existing orders and Awards insofar as such orders and Awards are chargeable to this Award. As soon as practicable after the receipt of notice of termination, the Supplier shall submit a statement to the appropriate department(s) showing in detail the services performed or items delivered under this Award to date of termination. The City agrees to compensate the Supplier for that portion of the prescribed charges for which the services were actually performed or items delivered under this Award and not previously paid.

36.2 By the City for Default by Supplier:

36.2.1 In the event that the materials and/or services furnished by the Supplier do not conform to the standard set

forth herein, or if the deliveries and servicing of this Award do not conform to the requirements detailed herein, the City through a written notice from the Purchasing Agent to the Supplier describing such default may as its options:

(a) Terminate the Award for default and the City shall have no further obligation under the Award.

(b) Allow the Supplier to cure default within a reasonable time as specified in the notice. The City, at its sole

option, may extend the proposed date of termination to a later date. If prior to the proposed date of termination, Supplier cures such default to the City’s satisfaction, then the proposed termination shall be ineffective. If Supplier fails to cure such default prior to the proposed date of termination, then the City may terminate its performance under this Award as of such date and have no further obligation under the Award.

36.2.2 In the event of failure to deliver any or all of the items or to perform required services, the City may cover

its loss by reasonably procuring from another source the items not delivered or the services not performed. Supplier shall be responsible for and shall pay to the City immediately upon demand the difference in price between that offered by the Supplier and that which the City was forced to pay for covering Supplier’s failure to deliver or perform services.

36.3 By the Supplier for Default by City:

36.3.1 Default by the City shall occur if the City fails to perform or observe the terms and conditions of the Award required to be performed or observed by the City, and the Supplier gives notice in writing to the City within 30 calendar days of the act or omission claimed by the Supplier to constitute default on the part of the City.

36.3.2 Upon receipt of such notice in writing from the Supplier, however, the City shall have 30 calendar days to

cure such default. The Supplier, at its sole option, may extend the proposed date of termination to a later date.

36.3.3 If City cures such default prior to the proposed date of termination, the proposed termination shall be

ineffective. If the City fails to cure such default prior to the proposed date of termination, then the Supplier may terminate its performance under this Award as of such date.

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37.0 PATENTS

The Supplier agrees to indemnify and save harmless the City, the Cheif Procurement Officer and assistants from all suits and actions of every nature and description brought against them or any of them, for or on account of the use of patented appliances, products or processes, and he shall pay all royalties and charges which are legal and equitable. Evidence of such payment or satisfaction shall be submitted, upon request of the Cheif Procurement Officer, as a necessary requirement in connection with the final estimate for payment in which such patented appliance, products or processes are used

38.0 SUPPLIER DEBT:

If Supplier, at any time during the term of this Award, incurs a debt, as the word is defined in section 15-122 of the Houston city code of ordinances, it shall immediately notify the city controller in writing. If the city controller becomes aware that Supplier has incurred a debt, she shall immediately notify Supplier in writing. If Supplier does not pay the debt within 30 days of either such notification, the city controller may deduct funds in an amount equal to the debt from any payments owed to Supplier under this Award, and Supplier waives any recourse therefore.

39.0 SUPPLIER'S DUTY TO PAY:

Supplier shall make timely payments to all persons and entities supplying labor, materials or equipment for the performance of this Award. Supplier agrees to protect, defend, and indemnify the City from any claims or liability arising out of Supplier's failure to make such payments. (Disputes relating to payment of MWBE Suppliers shall be submitted to arbitration in the same manner as any other disputes under the MWBE subcontract. Failure of the Supplier to comply with the decisions of the arbitrator may, at the sole discretion of the City, to be deemed a material breach leading to termination of this Award).

40.0 SITE VISIT:

When deemed necessary an inspection may be made by the Public Works & Engineering Department to determine whether a bidder actually has a facility at the location they have listed in the bid document.

41.0 POST AWARD MEETING:

Once the contract has been approved by City Council, PW&E will schedule a Post Award Meeting with the successful supplier and the PW&E End Users. This meeting will cover procurement, PW&E contacts, vendor invoicing, vendor payment, and all other matters related to contract administration.

42.0 CONTRACT COMPLIANCE:

1. The Department of Public Works & Engineering reserves the right to monitor this contract for compliance to ensure legal obligations are fulfilled and that acceptable level of services are provided. 2. Monitoring may take the forms of, but will not necessarily be limited to: 2.1 Site visits 2.2 Review of deliveries received for accuracy and timeliness 2.3 Review of contractor’s invoices for accuracy 3. The responsibility for monitoring compliance rests with the Contract Compliance Section, Management Support Branch of

the Office of the Director, Department of Public Works and Engineering.

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SECTION “D”

CITY OF HOUSTON EVALUATION MATRIX


PUBLIC WORKS AND ENGINEERING DEPARTMENT In determining the Best Value, the City may evaluate each bid on the basis of the following criteria: 1.0 BID EVALUATION:

1.1 The caustic soda award will be made to the Bidder determined to be the “best value respondent” that meets the

needs of the City. The City may make investigations, as it deems necessary, to determine the capabilities of the Bidder to provide for the requirements of the City of Houston. The Bidder shall furnish to the City such data within 10-working days upon request for this purpose. The City reserves the right to reject any offer as a result of the evidence or investigation if the Bidder fails to satisfy the City that the Bidder is properly qualified to provide the supplies and services contemplated.

1.2 When used, an evaluation committee consisting of Public Works & Engineering Department subject matter experts

will determine the “best value respondent” based on the following evaluation criteria as stated in order of importance below:

A. Bid Price 45 %

B. Past Performance Participation with the City

35 %

C. Conformance to the Invitation to Bid Requirements and Technical Specifications 15 %

D. M/WBE Participation 5 %

Total (Up to 100%) 100 %

1.3 The Bidder accumulating the most evaluation points shall be determined to be the “best value respondent”. 1.4 When used, the evaluation committee’s determination of the “best value respondent” and the subsequent

formal award recommendation will be final and not subject to bid participant review or protest.